Delegates to COP-10 held final contact group meetings on Tuesday morning
and afternoon, convening in evening and night SBSTA and SBI meetings to
complete their work and adopt conclusions and approve draft decisions to
be forwarded to the COP. Numerous draft decisions contain brackets and
were forwarded to the COP Presidency for further consultations. Contact
groups addressed scientific, technical and socioeconomic aspects of
mitigation to climate change (mitigation), capacity building, technology
transfer, matters relating to least developed countries (LDCs), progress
on the implementation of decision 5/CP.7 (adverse effects), and the
UNFCCC’s financial mechanism.

CONTACT GROUPS

MITIGATION: The EU reiterated
preference to request the Secretariat to compile submissions from
Parties on lessons learned from mitigation workshops held to date and
future steps under this agenda item, to facilitate ongoing consideration
of this agenda item “and elements of a future work programme” at
SBSTA-23. The G-77/CHINA, with the US and others, opposed reference to a
future work programme. Delegates agreed to forward the bracketed text to
SBSTA.

TECHNOLOGY TRANSFER: Delegates
addressed draft conclusions and a draft decision. Discussions resumed on
the issue of the framework for effective and meaningful actions to
enhance implementation of UNFCCC Article 4.5 (technology transfer).
Delegates could not agree on whether reference to the COP-8 Delhi
Declaration on Climate Change and Sustainable Development should be
included in the preamble of the draft decision. The draft conclusions
and bracketed draft decision were forwarded to SBSTA.

LDCS: Co-Chairs Bubu Jallow and
Ricardo Moita introduced a draft decision and draft conclusions.
Discussions were held on, inter alia, whether the LDC Fund should
begin funding national adaptation programmes of action (NAPA) priority
areas, and whether the LDC Fund should leverage additional resources,
provide co-financing and build upon existing plans and programmes.
Agreement could not be reached on all issues, and delegates agreed to
forward the bracketed conclusions and bracketed draft decision to SBI.

CAPACITY BUILDING: Co-Chair
Jukka Uosukainen (Finland) said many paragraphs in the draft decisions
remain bracketed.On text concerning integration and
mainstreaming in planning processes, the G-77/CHINA preferred to bracket
the reference to mainstreaming. Parties agreed to forward the draft
decision on capacity building in countries with economies in transition,
and the bracketed draft decision on capacity building in developing
countries to SBI.

SBSTA

ORGANIZATIONAL MATTERS: Election of officers other than
the Chair: Amjad Abdulla (Maldives) will serve
as SBSTA Vice-Chair and Ibrahim Al-Ajmi (Oman) will continue as
Rapporteur.

ADAPTATION: David Warrilow (UK)
said the contact group had been unable to resolve all outstanding
issues. SAUDI ARABIA and the RUSSIAN FEDERATION opposed the proposed
draft conclusions, arguing that these did not reflect their respective
proposals to the contact group. Following discussions and informal
consultations, Parties agreed to amend the draft conclusions, adding
brackets and noting that concerns of some Parties have not been
considered in the draft conclusions. SBSTA forwarded the draft
conclusions to the COP Presidency (FCCC/SBSTA/2004/L.31).

METHODOLOGICAL ISSUES: Good practice guidance (GPG) for
LULUCF activities, harvested wood products (HWP), and other issues
relating to LULUCF: Audun Rosland (Norway)
reported progress from the contact group. SBSTA adopted conclusions on
GPG, HWP and other LULUCF issues (FCCC/SBSTA/2004/L.26) and forwarded a
draft decision on GPG to the COP (FCCC/SBSTA/2004/L.26/Add.1), including
a draft COP/MOP decision.

Small-scale afforestation and reforestation project
activities under the CDM: Thelma Krug (Brazil)
reported consensus on draft conclusions and a draft decision. The SBSTA
adopted conclusions (FCCC/SBSTA/2004/L.20) and agreed to forward a draft
decision to the COP (FCCC/SBSTA/2004/L.20/Add.1).

Emissions from fuel used for international aviation:
PERUsaid that the draft conclusions
remain bracketed in their entirety. ARGENTINA stressed the lack of
concrete data and information available on this topic. Parties agreed to
remove the brackets, and SBSTA adopted the conclusions, as amended (FCCC/SBSTA/2004/L.18).

TECHNOLOGY TRANSFER: Kishan
Kumarsingh (Trinidad and Tobago) introduced draft conclusions (FCCC/SBSTA/2004/L.28)
and a bracketed draft decision (FCCC/SBSTA/2004/L.28/Add.1). SBSTA
adopted the draft conclusions without discussion. The G-77/CHINA
proposed to remove the bracketed text in the draft decision, which was
then approved by Parties as amended to be forwarded to the COP.

“GOOD PRACTICES” IN POLICIES AND MEASURES IN ANNEX I
PARTIES: Tony Surridge (South Africa) reported
on the informal consultations and introduced the draft conclusions,
noting that Parties had been unable to reach agreement. SOUTH AFRICA,
with several Parties, and opposed by SAUDI ARABIA, KUWAIT and UNITED
ARAB EMIRATES, expressed support for the text. Noting no agreement,
Parties decided to forward this item to SBSTA-22 (FCCC/SBSTA/2004/L.25).

RESEARCH AND SYSTEMATIC OBSERVATION: Stefan Rösner (Germany) outlined discussions in the
contact group. Chair Benrageb introduced draft conclusions (FCCC/SBSTA/2004/L.24)
and a draft decision (FCCC/SBSTA/2004/L.24/Add.1) on how to best put the
Global Climate Observing System plan into action. Parties adopted the
conclusions, and forwarded the draft decision to the COP for
consideration, including a minor amendment.

COOPERATION WITH RELEVANT INTERNATIONAL ORGANIZATIONS:
Marcela Main (Chile) introduced draft
conclusions (FCCC/SBSTA/2004/L.22), which were adopted by SBSTA without
discussion.

OTHER MATTERS: Issues relating to the implementation of
Protocol Article 2.3: Chair Benrageb
introduced draft conclusions (FCCC/SBSTA/2004/L.19), noting that there
had been no progress since SBSTA-20. SBSTA adopted the conclusions
without discussion.

Any other matters: Chair
Benrageb introduced draft conclusions containing a draft COP decision (FCCC/SBSTA/2004/L.21
and Add.1) on activities implemented jointly under the pilot phase. The
conclusions were adopted without amendment, and Parties forwarded the
draft decision to the COP.

REPORT ON THE SESSION: Chair
Benrageb presented the report on the session (FCCC/SBSTA/2004/L.16),
which Parties adopted. SBSTA-21 closed at 1:43 am.

SBI

ORGANIZATIONAL MATTERS: Elections of officers other than
the Chair: Heorhiy Veremiychyk (Ukraine) was
elected SBI Vice-Chair, and Emilio Sempris (Panama) will continue to
serve as Rapporteur.

ADMINISTRATIVE AND FINANCIAL MATTERS: Audited financial
statements for the biennium 2002-3 and budget performance for the
biennium 2004-5: Harald Dovland (Norway)
reported on informal consultations, noting that discussions focused on
the impacts of interest-rate fluctuations. Chair Stoycheva introduced
the draft conclusions and a draft decision (FCCC/SBI/2004/L.15 and
Add.1). Parties adopted the conclusions, and agreed to forward the draft
decision to the COP.

CONTINUING REVIEW OF THE FUNCTIONS AND OPERATIONS OF THE
SECRETARIAT: Harald Dovland reported on the
informal consultations on workshop funding and promoting a geographical
balance in the Secretariatï¿½s senior staff. Chair Stoycheva introduced
the draft conclusions (FCCC/SBI/2004/L.14), which Parties adopted
without amendment.

ANNEX I NATIONAL COMMUNICATIONS: Summary report on
in-depth reviews, report on the workshop on the preparation of fourth
national communications, and status report on the review of third
national communications: Chair Stoycheva
introduced draft conclusions (FCCC/SBI/2004/L.17), which Parties adopted
without amendment.

UNFCCC ARTICLE 6: Crispin
dï¿½Auvergne (Saint Lucia) reported on the groupï¿½s discussions, which
focused on the development of an information clearing house and
workshops. Chair Stoycheva introduced draft conclusions and a draft
decision (FCCC/SBI/2004/L.16 and Add.1). Parties adopted the conclusions
and forwarded the draft decision to the COP.

NON-ANNEX I NATIONAL COMMUNICATIONS: Work of the
Consultative Group of Experts on non-Annex I national communications:
Chair Stoycheva introduced the draft
conclusions (FCCC/SBI/2004/L.18), which Parties adopted with a minor
amendment.

Submission of second and, where appropriate, third
national communications: Chair Stoycheva
introduced the draft conclusions (FCCC/SBI/2004/L.27), noting that
Parties had not reached agreement. Parties decided to forward the text
to the COP Presidency for further consideration.

Compilation and synthesis of initial national
communications: Chair Stoycheva introduced the
draft conclusions (FCCC/SBI/2004/L.23), noting that Parties could not
reach agreement. Parties adopted agreed paragraphs of the draft
conclusions and decided to forward the other paragraph to the COP
Presidency.

OTHER MATTERS: Level of emissions for the base year of
Croatia: Jim Penman (UK) reported on informal
consultations, noting that text could not be agreed. The US and CROATIA,
opposed by SAUDI ARABIA and SERBIA AND MONTENEGRO, suggested that
further consultations be held. Parties adopted the draft conclusions
with an amendment that SBI will continue its consideration of this issue
at its next session (FCCC/SBI/2004/L.21).

UNFCCC FINANCIAL MECHANISM: Report of the GEF to the COP:
Chair Stoycheva introduced the draft
conclusions (FCCC/SBI/2004/L.20). Regarding provisions on resource
allocation, ARGENTINA, supported by the G-77/CHINA and others, and
opposed by the US and JAPAN, recommended amending text on relevant
methodologies, indicators and data. Parties agreed to delete reference
to text on methodologies, indicators and data, and adopted the draft
conclusions, as amended.

Special Climate Change Fund (SCCF), matters relating to
the implementation of decision 5/CP.8 (review of the financial
mechanism), additional guidance to the GEF:
Joseph Buys (Belgium) and Rawleston Moore (Barbados) noted that the
group had made progress on these issues, but had insufficient time to
reach agreement on the SCCF or additional guidance to the GEF. Parties
adopted draft conclusions on matters relating to the implementation of
decision 5/CP.8 (FCCC/SBI/2004/L.24), and agreed to forward a draft
decision on the SCCF to the COP Presidency (FCCC/SBI/2004/L.25). A draft
decision on assessment of funding to assist developing countries in
fulfilling their UNFCCC commitments (FCCC/SBI/2004/L.26) was also
forwarded to the COP Presidency with minor amendments.

CAPACITY BUILDING: Shirley
Moroka (South Africa) said the contact group had reached a decision on
capacity building for countries with economies in transition only. SBI
agreed to forward the draft decision to the COP (fccc/sbi/2004/L.22/add.1).
On the issue of capacity building for developing countries she said
Parties had not reached agreement. SBI forwarded the bracketed draft
decision to the COP Presidency (FCCC/SBI/2004/L.22/Add.2).

IMPLEMENTATION OF UNFCCC ARTICLE 4.8 AND 4.9: Progress on
the implementation of activities under decision 5/CP.7: Paul Watkinson (France) noted that the group had made
some progress and hoped that further consultations during the COP would
result in agreement. Chair Stoycheva introduced a conference room paper
on the issue (FCCC/SBI/2004/CRP.3), which Parties decided to forward to
the COP Presidency.

Matters relating to the LDCs:
Bubu Jallow (the Gambia) said the group had not reached an agreement.
SBI decided to forward bracketed draft decisions and conclusions to the
COP presidency (FCCC/SBI/2004/L.28/Add.1, Add.2 and Add.3).

REPORT ON THE SESSION: Emilio
Sempris introduced the report on the session (FCCC/SBI/2004/L.13), which
SBI adopted. SBI-21 closed at 1:14 am.

IN THE CORRIDORS

As
described by one observer, Tuesday was clearly the ï¿½day of the bracketsï¿½
with numerous bracketed draft decisions left unfinished and being
forwarded by SBSTA and SBI directly to the COP Presidency that has
already begun informal senior-level discussions. Exhausted delegates in
the corridors remarked upon the unusual approach taken by the SBI and
SBSTA, in limiting strictly the time allowed for discussion on issues
that were near completion. In particular, observers pointed out that the
issues of the financial mechanism and the LDCs could have completed
their work, noting that with three days to go, sufficient time could
have been found.

Delegates also expressed their disappointment at the renegotiation of
terms of the LDC Fund, meaning that progress made at COP-9 on funding
for adaptation is essentially negligible. Meanwhile, closure of SBSTA
was held up for hours by insistence by the Russian Federation and Saudi
Arabia that their proposals on adaptation be reflected in the draft
conclusions, generating speculation about the motivation for the Russian
objection.

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